Correlation Between China Mobile and Zhejiang Orient
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By analyzing existing cross correlation between China Mobile Limited and Zhejiang Orient Gene, you can compare the effects of market volatilities on China Mobile and Zhejiang Orient and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Mobile with a short position of Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhejiang Orient.
Diversification Opportunities for China Mobile and Zhejiang Orient
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Zhejiang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene and China Mobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Mobile Limited are associated (or correlated) with Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of China Mobile i.e., China Mobile and Zhejiang Orient go up and down completely randomly.
Pair Corralation between China Mobile and Zhejiang Orient
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.31 times more return on investment than Zhejiang Orient. However, China Mobile Limited is 3.28 times less risky than Zhejiang Orient. It trades about 0.29 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about -0.08 per unit of risk. If you would invest 10,467 in China Mobile Limited on September 19, 2024 and sell it today you would earn a total of 661.00 from holding China Mobile Limited or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhejiang Orient Gene
Performance |
| Timeline |
| China Mobile Limited |
| Zhejiang Orient Gene |
China Mobile and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhejiang Orient
The main advantage of trading using opposite China Mobile and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Zhejiang Orient can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhejiang Orient will offset losses from the drop in Zhejiang Orient's long position.| China Mobile vs. Tongyu Communication | China Mobile vs. Wintao Communications Co | China Mobile vs. Eastroc Beverage Group | China Mobile vs. Shenzhen Kexin Communication |
| Zhejiang Orient vs. Industrial and Commercial | Zhejiang Orient vs. Kweichow Moutai Co | Zhejiang Orient vs. Agricultural Bank of | Zhejiang Orient vs. China Mobile Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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